Introduction
If you plan on being a long-term resident in Korea, whether as a working holiday participant, digital nomad, expat, or university student, you will inevitably face some challenges without having a Korean bank account. This is especially true if you want to order something online! In addition, setting up automatic payments for bills, utilities, phone services, health insurance, and rent can greatly simplify your life!
How to Open a Bank Account in Korea
Opening a bank account in Korea is a fairly straightforward process. However, there are some steps that need to be followed, along with certain requirements that need to be met.
Requirements
- Passport: You will also need your valid passport.
- Foreign Registration Card (ARC): This is the most important requirement. You can't open a bank account without a Resident Card (ARC).
- Phone number: A Korean phone number is required. This is because most banks send security codes for online banking through text messages
Procedure
- Visit a Bank: Choose a bank and visit one of their branches. It's recommended to visit larger branches as they are more likely to have English-speaking staff.
- Fill Out the Application Form: At the bank, everything is done digitally via a tablet, usually the bank teller just asks you to sign.
- Wait for Approval: After submitting the form, the bank staff will process your application. This usually takes about 15-30 minutes.
- Receive Your Bank Book and Card: Once your application is approved, you will receive your bank book and card on the spot.
Which Bank to Choose?
When it comes to choosing a bank, you might want to consider their level of English support. From personal experience and general consensus, KEB Hana Bank and Shinhan Bank are known to have the best English support.
- KEB Hana Bank: They have a dedicated English website and customer service. Their online banking is also available in English.
- Shinhan Bank: Shinhan also offers good English support with English-speaking staff in some branches and English online banking.
Remember, it's crucial to ensure you have all your required documents and understand the process before you visit a bank. With the right preparation, opening a bank account in Korea can be a simple and hassle-free process!
Dealing with Language Barriers
While the process of opening a bank account in Korea is generally straightforward, there may be times when the language barrier creates some obstacles. Bank tellers might tell you that you can't open a bank account due to misunderstandings. If this happens, don't take it personally. Simply try visiting a different branch.
Remember, tools like Google Translate and Papago can be invaluable in these situations for bridging the language gap. Don't let language barriers deter you from your goal.
Limitations
There are certain limitations when you first open a bank account in Korea. For instance, you may only be allowed to send up to 300,000 Won to another individual per day. However, there is no purchase limit as long as you have sufficient funds in your account. I believed for a very long time that I couldn’t spend more than 300,000 Won a day, on the other hand I saved some money not recklessly spending.
This limit can be lifted if you can provide proof of employment or work, or after 6 months when you can request for it to be lifted.
It's important to note that these limitations apply only to transactions from one private individual to another, and not to companies. A workaround this is to use services like KakaoPay, which is an alternative to PayPal in Korea, to send money to your friends.
Recommended Apps
- Wise (formerly Transferwise): This is a great app for transferring money from your currency to your Korean bank account or to other individuals' bank accounts in Korea. They offer good rates and make the process very easy.
- KakaoPay: Another highly recommended app, KakaoPay is a convenient and user-friendly way to handle transactions in Korea.
Conclusion
In conclusion, opening a bank account in Korea may seem daunting at first, but with careful preparation and a clear understanding of the requirements and procedures, it can be a straightforward process. Remember to consider the level of English support provided by different banks and to be patient if you encounter any language barriers. With the right tools and resources, you'll be able to navigate through this important step in setting up your life in Korea.
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About the Author
Kim Ninja (Huy-Kim Nguyen)
Cloud Engineer / WebApp Developer 💻
Content Creator Bridging Korea 🇰🇷 to the World 🌎
Startup Founder based in Seoul, South Korea 🚀
The blog published by Kim Ninja (Huy-Kim Nguyen) is available for informational purposes only and is not considered legal advice on any subject matter.
